US consumer debt rises on more car, school loans

WASHINGTON (AP) - Consumers in the United States took on more debt in November to buy cars and attend school, but stayed cautious with their credit cards.

The Federal Reserve said on Tuesday that consumers increased their borrowing in November by US$16 billion (S$19.6 billion) from October to a seasonally adjusted record of US$2.77 trillion.

Borrowing that covers cars and student loans increased US$15.2 billion. A category that measures credit card debt rose just US$817 million.

The sharp difference in the borrowing gains illustrates a broader trend that began during the Great Recession. Four years ago, Americans carried US$1.03 trillion in credit card debt, an all-time high. In November, that figure was 16.5 per cent lower.